The recent announcement, by the government restricts the import of laptops, tablets, and computers allowing imports. There are some exceptions though. Individuals can import one item through channels and for research and development purposes up to 20 items per shipment are allowed. These imported goods should be used for purposes that cannot be sold after use and should contribute to capital goods. The aim of this decision is to address concerns, about trade imbalances caused by the increasing influx of imports.
On August 3, the government unveiled new measures pertaining to the importation of laptops, tablets, personal computers, ultra-small form factor computers, and servers.
Under these regulations, the importation of these items will be sanctioned upon obtaining a license. However, specific scenarios have been excluded from these constraints. For instance, individuals can import one laptop, tablet, personal computer, or ultra-small form factor computer through online platforms, courier services, or postal channels without being subjected to restrictions. Furthermore, imports falling under the baggage regulations are also exempt from these stipulations, as confirmed by a notice from the Directorate General of Foreign Trade.
Moreover, a provision has been made for an import license exemption for up to 20 of these items per shipment. This exemption is applicable for various purposes such as research and development, testing, benchmarking and evaluation, repair and re-export, as well as product development.
The notification elucidates that imported goods should be employed solely for the intended purposes and should not be traded. Following the fulfillment of their intended use, the products must either be rendered unusable and discarded or be re-exported. This condition is valid unless electronic goods are an indispensable component of a capital asset.
These import constraints arise in the context of mounting pressure on India’s trade balance. Notably, the merchandise trade deficit exceeded $20 billion in both May and June. While India’s merchandise imports dwindled by 12.7 percent during April-June compared to the first quarter of the previous fiscal year, exports experienced an even steeper decline of 15.1 percent.
Although overall foreign acquisitions have declined, imports of electronic goods have displayed a contrary trend. In the April-June period, imports of electronic goods surged by 6.3 percent year-on-year, reaching a value of $19.76 billion. Remarkably, electronic goods have emerged as India’s primary import category, second only to petroleum products. In a parallel development, India’s export of electronic goods experienced a remarkable upswing, soaring by 47.1 percent during April-June to reach a value of $6.96 billion, as indicated by the latest available data.
